1120(Tax Credit) How to avail tax credit for Multiple form 16 (company transfer)? Project - Make Knowledge Free Video Link - https://youtube/watch?v=tjfli_OTmj0 Applicant has worked at two different units which had two different TAN registrations (tax deduction and collection registration )....while issuing you salary , they have deducted(collected ) against your PAN tax at source (TDS) against their respective TAN registration and deposited it to the revenue ..... Let me make this case simple for you .. Previous year 2013 14 Assesse - Individual Status - Resident Person - Individual Case Solution - (1) Unit X of company XYZ having TAN registration MRT000117 Period worked - April 1 2013 to October 15 2013 You worked from April 2013 to October 2013 at A unit of a Company XYZ which had TAN registration MRT000117F...using this TAN registration , it collects against your PAN (AIJPD6751A) (assumed ) TDS as per TDS provision applicable on salary income i.e section 192 ...i see that it has collected 12953 Rs against total income of Rs 194842 Rs What it means is that you( implying your PAN ) have credit available against this TAN(MRT000117F)strictly registration for Rs 12953 Rs ....... (2) Unit Y of company XYZ having TAN registration SHLO000200E Period worked - October 15 2013 ro March 31 2014 Now, when you get transferred to Unit Y of same company XYZ , this unit, it may please be noted with registered with a different TAN registration i.e SHLO00200E ...here , you work for the remaining portion of the previous financial year October 2013 to March 2014 ... Rightfully this unit uses its own TAN registration SHLO000200E to do any TDS for incurred salary expense . Therefore , i see from your credit statement that this deductor has deducted against total income 360132 Rs 24595 Rs ...so basically you do have credit of 24595 Rs ,however against this TAN registration now ! What this means is when you claim credit , department checks whether the TAN against which you are claiming credit has that much credit available to you ! What you did - You claimed credit for (24595 + 12953 37548 for TAN registration SHL0000200E..what this means is that you are claiming credit for taxes paid against this TAN registration only ....read this twice ..did you really mean that ? You didnt ..likewise the department when it checks TAN registration for taxes collected against your PAN , it shows just 24595 Rs whereas you claimed extra 12953 which is actually against separate TAN registration MRT000117 for Unit X You also write that you were confused what to put in salary credit figures in TDS statement ...in case they have merged figures , what you can do here is take figures from the tax credit statement In TDS schedule ,for Unit X of company XYZ, put amount credited =194842, take tax credit for 12953 in a row which clearly mentions this units TAN registration MRT000117 (effectively you are claiming then credit for correct TAN registration against which such collection was indeed done ) In TDS schedule ,for Unit Y of company XYZ ,put amount credited = 360132 and take tax credit 24595 Rs , again in a row which clearly mentions this units TAN registration i.e SHLO000200E .... Doing this , you will then get credit for what is due to you in terms of tax credit that is available to you in terms of TDS credit done on your salary income under section 192 as per slabs ! (B)in Income tab , you can look at the joint form 16 given to you and see at point 6 where it shall mention Income chargable under head salaries ....i presume that this is the joint salary income (after removing exempt allowances in point 4 and 5 )...put this in income from salary (if you are using ITR 1 ) Deductions under chapter VIA (as applicable )will be needed to be put though i hope that the company has been prudent enough to merge the applicable investments taking care to avoid duplication! But you will now raise the billion dollar question , that now that you have already filed a return and have received a tax credit mismatch notice , what can you do now! The process is called applying for rectification and you will rectify for correcting tax credit mismatch and like explained will correct the TDS schedule like i laid down here ! Luckily i have a tutorial on how to rectify return for tax credit mismatch at this link https://youtube/watch?v=uI1Uyf__m8k See also this link to understand why you need not file return again and how rectification differs from revision when you do tax credit mismatch rectification https://youtube/watch?v=yAh5PzF22r4 Cheers , Amlan Dutta
Posted on: Tue, 30 Dec 2014 03:35:58 +0000
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